Could anyone cast there eye over this for 22/23 YE? I am (pretty) confident with the Dividends but not the Tax due on Pension income.
Gross Income from State Pension
10,926.00
Gross Income from Teachers Pension
25,114.00
Dividend income
32,804.00
Total Income
68,844.00
Personal Allowance
-12,570.00
Total Taxable income
56,274.00
Taxed at 40% (68844-12570-37700) 18,574
7,429.60
Taxed at 20% (10,926+25114-18574)17,466
3,493.20
Less Tax paid
-4,633.00
Tax Due in Pensions
6,289.80
Dividend Income
32,804.00
Dividend Allowance
-2,000.00
Taxable Dividend total
30,804.00
Dividends Taxed at 33.75% 18,574 (as above)
6,268.73
Dividends Taxed at 8.75% (30,804-18,574) 12,230
1,070.13
Tax Due on Dividends
7,338.85
Total Tax due 2022/23
13,628.65
Thanks in advance.
-- Edited by tonys on Thursday 15th of June 2023 02:05:03 PM
-- Edited by tonys on Thursday 15th of June 2023 02:35:43 PM
Artois said
Thu Jun 15 21:55 2023
I make the total tax as £12,032.84
Leger said
Fri Jun 16 11:30 2023
Hi Tonys.
You don't apply 40% to the pensions. Use up as much of the basic rate as you can then apply the remainder of BR followed by HR to the dividends. This is how my software has calculated it.
Thank you so much. I knew that the calculation of Tax wasn't right, but I don't pretend to be qualified to complete higher rate returns, this was an elderly neighbour asking a favour. (I know, never do a favour, but she is 93 and VERY frail) Had I have know it was higher rate, I wouldn't have touched it!
tonys said
Fri Jun 16 13:09 2023
Having re worked this it makes perfect sense now, much appreciated, I assume the tax paid via Pension of £4,633 would reduce the tax due £4,694 to £61? (she paid tax on one of the pensions per my original workings and the 2 pension figure were GROSS.)
Leger said
Tue Jun 27 09:51 2023
Yes, I should have included the tax deducted at source in my calculation, which would have then showed £61 tax due on pensions.
tonys said
Tue Jun 27 11:39 2023
Thanks John. I feel like I really learned something there, maybe doing the favour wasn't so bad an idea after all!
Hi
Could anyone cast there eye over this for 22/23 YE? I am (pretty) confident with the Dividends but not the Tax due on Pension income.
Thanks in advance.
-- Edited by tonys on Thursday 15th of June 2023 02:05:03 PM
-- Edited by tonys on Thursday 15th of June 2023 02:35:43 PM
I make the total tax as £12,032.84
Hi Tonys.
You don't apply 40% to the pensions. Use up as much of the basic rate as you can then apply the remainder of BR followed by HR to the dividends. This is how my software has calculated it.
Thank you so much. I knew that the calculation of Tax wasn't right, but I don't pretend to be qualified to complete higher rate returns, this was an elderly neighbour asking a favour. (I know, never do a favour, but she is 93 and VERY frail) Had I have know it was higher rate, I wouldn't have touched it!
Having re worked this it makes perfect sense now, much appreciated, I assume the tax paid via Pension of £4,633 would reduce the tax due £4,694 to £61? (she paid tax on one of the pensions per my original workings and the 2 pension figure were GROSS.)
Yes, I should have included the tax deducted at source in my calculation, which would have then showed £61 tax due on pensions.
Thanks John. I feel like I really learned something there, maybe doing the favour wasn't so bad an idea after all!